Dropping Sales Volume Raises Concerns For South Korea’s GKL – February Sales Are Down By 13%

Dropping Sales Volume Raises Concerns For South Korea’s GKL - February Sales Are Down By 13%

Grand Korea Leisure Co Ltd (GKL), one of the leading South Korean gaming operators has recorded dampened sales volume for February. In an official announcement on Thursday, the company reported that the total of its casino sales stopped at KRW 31.82 billion (US$28.1 million) in February. The published figures show a 2.7 percent decline from the total casino sales registered by GKL for the same period last year.

Comparing the February sales with that of the previous month this year, the sales have declined by 8.7%. As stated by GKL in a filing to the Korean exchange, the year-on-year decline in sales volume for the month of February can be attributed to the fact that while there was a significant 14.2% decline in table game sales in February this year, the Machine game sales as well followed suit with a moderate fall of 3.1percent to KRW 4.70 billion.

With GKL recording a fair percentage decline in sales volume, it is quite surprising that the same is not echoed by their competitor Paradise Co Ltd. In an announcement made on Tuesday, earlier this week, Paradise Co Ltd. reported that its casino revenue grew by 28.5 percent year on year in February hitting the KRW55.83 billion mark.

GKL is a part of the Korea Tourism Organization, an affiliate of South Korea’s Ministry of Culture, Sports and Tourism. The company operates three foreigner-only casinos at home which goes by the brand name of Seven Luck. Two of their casinos are right in the capital city of Seoul while the other one is in the port city of Busan.

Adding to the concerns of the GKL is the fact that their total revenue in the first two months of 2019 has slumped by 18.8 percent year on year to an estimated KRW66.54 billion.
Both table and machine game sales for the first two months of the year are down by 20.9% to approximately KRW 57.07 billion and 3.7 percent, to about KRW9.47 billion respectively.
In a report released last month by GKL, the company said that their fourth-quarter net income was sliced nearly by 50 percent to KRW6.85 billion while the net income for entire year 2018 dropped by 3.5 percent to KRW77.74 billion.

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